Strategic financial planning works from the business and strategic plans to identify what financial resources are needed to obtain and develop the resources to achieve the goals in the two types of plans. Financial planning is necessary to create relevant and realistic budgets.
A strategic financial plan addresses the following:
- Define financial goals and objectives in the budgeting phase.
- Implement a comprehensive and inclusive financial process.
- Identify, allocate and build direct and indirect costs into program budgets to understand the real costs of program delivery.
- Create a funding plan to support program objectives including budgeting for different scenarios.
- Know when and how to use multi-year budgets in the planning process.
- Incorporate cash flow projections in the annual budget process.
In order to achieve your financial goals, you must know what your plans are for sustaining your programs when you receive funding.